We Think Select Medical Holdings (NYSE:SEM) Is Taking Some Risk With Its Debt
We Think Select Medical Holdings (NYSE:SEM) Is Taking Some Risk With Its Debt
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the permanent loss of capital.' So it seems the smart money knows that debt - which is usually involved in bankruptcies - is a very important factor, when you assess how risky a company is. We can see that Select Medical Holdings Corporation (NYSE:SEM) does use debt in its business. But the real question is whether this debt is making the company risky.
戴维·艾本说得好:“波动性不是我们关心的风险。我们关心的是避免永久的资本损失。”因此,聪明人知道债务(通常参与破产)是评估公司风险的非常重要的因素。我们可以看到Select Medical Holdings Corporation(NYSE:SEM)在其业务中确实使用债务。但真正的问题在于,这种债务是否使公司变得有风险。
What Risk Does Debt Bring?
债务带来了什么风险?
Debt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. Of course, the upside of debt is that it often represents cheap capital, especially when it replaces dilution in a company with the ability to reinvest at high rates of return. The first thing to do when considering how much debt a business uses is to look at its cash and debt together.
债务是帮助企业增长的工具,但如果企业无法偿还债务,那么它就存在于债权人的威胁之下。如果公司无法履行偿还债务的法律义务,那么股东可能会一无所有。虽然这种情况并不常见,但我们经常看到负债累累的公司因贷款人迫使它们以低于市价的价格筹集资金而永久稀释股东。当然,债务的好处在于它通常代表着廉价资本,特别是当它用于取代具有高回报率再投资能力的公司的稀释时。考虑企业使用多少债务时,首先要做的是将其现金和债务放在一起看。
What Is Select Medical Holdings's Debt?
Select Medical Holdings的债务情况如何?
As you can see below, Select Medical Holdings had US$3.85b of debt, at March 2024, which is about the same as the year before. You can click the chart for greater detail. However, because it has a cash reserve of US$135.3m, its net debt is less, at about US$3.71b.
正如您下面所看到的,在2024年3月,Select Medical Holdings的债务总额为38.5亿美元,与前一年相当。更详细的信息,请单击图表。但由于它持有1.353亿美元的现金储备,其净债务较少,约为37.1亿美元。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240723/0-cf67804ed938fca7cda71376e7464dbf-0-7eed5cbd24c31aa3b755a3542ad472ea.png/big)
A Look At Select Medical Holdings' Liabilities
查看Select Medical Holdings的负债情况
According to the last reported balance sheet, Select Medical Holdings had liabilities of US$1.18b due within 12 months, and liabilities of US$5.01b due beyond 12 months. Offsetting this, it had US$135.3m in cash and US$1.13b in receivables that were due within 12 months. So its liabilities outweigh the sum of its cash and (near-term) receivables by US$4.92b.
根据上次报告的资产负债表显示,Select Medical Holdings有11.8亿美元的负债在12个月内到期,50.1亿美元的负债超过12个月到期。与此相抵消的是,它拥有1.353亿美元的现金和1.13亿美元的应收账款,这些账款在12个月内到期。因此,其负债超过其现金和(短期)应收账款的总和约为49.2亿美元。
This is a mountain of leverage relative to its market capitalization of US$4.95b. Should its lenders demand that it shore up the balance sheet, shareholders would likely face severe dilution.
相对于其市值49.5亿美元,这是一座负债山。如果其贷款人要求其巩固资产负债表,股东可能会面临严重的稀释。
We use two main ratios to inform us about debt levels relative to earnings. The first is net debt divided by earnings before interest, tax, depreciation, and amortization (EBITDA), while the second is how many times its earnings before interest and tax (EBIT) covers its interest expense (or its interest cover, for short). The advantage of this approach is that we take into account both the absolute quantum of debt (with net debt to EBITDA) and the actual interest expenses associated with that debt (with its interest cover ratio).
BJ批发俱乐部控股公司的净债务只有EBITDA的0.62倍。而其EBIT轻松覆盖其利息费用,比例为12.6倍。因此,我们对其超级保守的债务使用感到相当放心。虽然BJ批发俱乐部控股公司在EBIT方面没有取得太多进展,但至少其盈利保持稳定。当分析债务水平时,资产负债表是显然的切入点。但归根结底,企业未来的盈利能力将决定BJ批发俱乐部控股公司能否随着时间的推移加强资产负债表。因此,如果你要关注未来,可以查看一下这份免费的分析报告,了解分析师的盈利预测。
Select Medical Holdings has a debt to EBITDA ratio of 4.6 and its EBIT covered its interest expense 3.0 times. Taken together this implies that, while we wouldn't want to see debt levels rise, we think it can handle its current leverage. The good news is that Select Medical Holdings grew its EBIT a smooth 40% over the last twelve months. Like the milk of human kindness that sort of growth increases resilience, making the company more capable of managing debt. The balance sheet is clearly the area to focus on when you are analysing debt. But it is future earnings, more than anything, that will determine Select Medical Holdings's ability to maintain a healthy balance sheet going forward. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
Select Medical Holdings的债务与EBITDA比率为4.6,其EBIT覆盖了其利息支出的3倍。从总体上看,这意味着,虽然我们不希望看到债务水平上升,但我们认为它现在可以处理其当前的负债。好消息是,Select Medical Holdings在过去的十二个月中平稳地增长了40%的EBIT。像人间之善奶一样,这种增长增强了其韧性,使公司更有能力管理债务。当您分析债务时,明显应重点关注资产负债表。但是,重要的是未来的收入,而不是任何东西,将决定Select Medical Holdings的维持健康资产负债表的能力。因此,如果您想看看专业人士的意见,您可能会发现分析师利润预测的免费报告很有趣。
Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. So we clearly need to look at whether that EBIT is leading to corresponding free cash flow. In the last three years, Select Medical Holdings's free cash flow amounted to 23% of its EBIT, less than we'd expect. That weak cash conversion makes it more difficult to handle indebtedness.
最后,业务需要自由现金流来偿还债务;会计利润并不能解决问题。因此,我们清楚地需要看看EBIT是否导致相应的自由现金流。在过去的三年中,Select Medical Holdings的自由现金流总额为其EBIT的23%,这低于我们的预期。这种较弱的现金转换使得处理负债更加困难。
Our View
我们的观点
Neither Select Medical Holdings's ability handle its debt, based on its EBITDA, nor its interest cover gave us confidence in its ability to take on more debt. But its EBIT growth rate tells a very different story, and suggests some resilience. It's also worth noting that Select Medical Holdings is in the Healthcare industry, which is often considered to be quite defensive. Taking the abovementioned factors together we do think Select Medical Holdings's debt poses some risks to the business. While that debt can boost returns, we think the company has enough leverage now. When analysing debt levels, the balance sheet is the obvious place to start. However, not all investment risk resides within the balance sheet - far from it. To that end, you should learn about the 2 warning signs we've spotted with Select Medical Holdings (including 1 which is potentially serious) .
根据Select Medical Holdings的EBITDA,它处理其债务的能力,以及其利息盖率并没有使我们对其承担更多债务的能力有信心。但其EBIT增长率讲述了完全不同的故事,并表明具备一定的韧性。值得注意的是,Select Medical Holdings在医疗保健行业中,该行业通常被认为是相当防御性的。综合以上因素,我们确实认为Select Medical Holdings的债务对业务构成一定风险。虽然这种债务可以提高回报,但我们认为公司已经有足够的杠杆作用。在分析债务水平时,资产负债表是显然的起点。但是,并非所有的投资风险都存在于资产负债表中,远非如此。为此,您应该了解我们发现的Select Medical Holdings的2个警示信号(包括1个可能严重的警示信号)。
If, after all that, you're more interested in a fast growing company with a rock-solid balance sheet, then check out our list of net cash growth stocks without delay.
如果您在所有这些工作之后,更感兴趣于拥有坚实资产负债表的快速发展公司,请立即查看我们的净现金成长股列表。
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